BUYING A BUSINESS
Targeting a business for sale
Approaching business owners directly is a delicate and time-consuming process, as most are focused solely on the success of their operation, and careful handling is often required.
Our fully managed service involves an assessment of your acquisition criteria to generate a list of suitable companies to approach. We then contact these targets in a measured way to ensure discretion, confidentiality and the best chance of success. We work as your advocate, through the suitability process, valuation and all the way to the closing table.
Our common sense approach and hands-on experience operating businesses in BC can be invaluable during due diligence, but more importantly at the closing table. Emotions often come into play at closing and having a dedicated advocate in your corner, as a sounding board, and impartial advisor can drastically increase the odds of a better deal.
What is the process for representing a Buyer?
After an initial consultation, our researchers go to work looking for the right business to fit your criteria. If a targeted internet search does not yield a suitable business match, we approach business owners directly to open the door to negotiations.
Our bespoke service is geared towards getting results and with careful planning, we offer a professional approach to a targeted business acquisition. It’s discrete and confidential and respects the dignity of a seller, who may have been approached many times.
How do you approach potential targets?
With tact and precision. Business owners (you may have been one) are typically bombarded with business to business salespeople trying to sell them something. Seasoned professionals often build a sturdy wall and have tenacious gatekeepers guarding their precious time and contact details for a good reason.
Our method of contact is typically conservative and direct, via mail, a personal envelope service or by phone if we have an introduction. With sound research and a diverse web of British Columbian business contacts, we can target business owners on your behalf, often with a personal introduction.
We intentionally restrict the number of clients we handle so we can maintain the intense and bespoke service we provide for all our clients.
Who pays for a Buyer's Broker?
If a buyer is asking for help in identifying targeted business sellers and approaching them for an acquisition – the buyer pays. If the Listing Broker, does decide to pay a commission, then it will come from the Sell-side.
If a business is listed for sale, some M&A firms and Business Brokers will split a commission, but most won’t.
Even though the seller is often under the assumption, that a payable commission, will be shared, it isn’t. What often happens, is the Listing Broker will not pass on the buyer’s interest and not tell the seller. So the buyer is not represented.
The seller is being done a disservice and it makes for a difficult decision because the seller is missing out on a potential buyer or without a Buying Broker, the buyer is left without representation.